Salary Sacrifice - incorrectly setup, payroll processed but no entry (one employee)

[smah123]

We have an employee (Mr X) in our company who requested to put 100% as salary sacrifice to Super. 

My colleague created new payroll category under superannuation as salary sacrifice, however only error on the setup was we selected "100%" against "Gross Wages" instead of "100%" against "Base Salary".  Also noticed that "Exempt" option was not greyed out as it does when we do setup for other salary sacrifice category.

We didnt notice this error until employee came back and adviced that he has not received payslip yet. 

I checked Salaries & Wages (P&L) account, and I cannot find Mr X in that list, and also not in Superannuation payable account (BS) or Superannuation expense (P&L). Also Super guarantee was not processed for Mr X. 

We ran payroll this week, and fixed the error to 100% against Base Salary. And it worked perfectly. Employee received payslip, also the amount for salary sacrifice showed in superannuation report that we ran.

Your help or advice if highly appreciated.

[CloverQ · Accepted solution]

Hi @smah123 

Salary Sacrifice can be set up to be 100% of Gross Wages, or 100% of a single payroll category such as Base Salary, it would all depend on what suits your business set up best. The 'Exempt' button would be greyed out if the calculation basis is base on a single payroll category. 

If the salary sacrifice superannuation category was set to be 100% of Gross Wages, recorded pay would still hit the assigned bank account, wage expense account, linked super expense and payable account, as well as accruing superannuation guarantee. If no traces can be found in these areas, then it would suggest the pay was not entered/deleted.

I'd suggest searching for the pay recorded via Payroll > Transaction Journal, or Find Transactions by card or payroll categories. If located, you can drill into the transaction, hit Ctrl+ R to recap the transaction. The accounts debited/credited are per the set up at the time of recording the transaction, which may be different to the current set up. 

Once the pay is located, please feel free to delete or reverse the pay, then record it again with the updated set up. I hope this helps.